May 20,2020, Updated March 24, 2024
Timeshares are tricky enough to navigate in America, but buying a timeshare in a foreign country is even more risky. Two Mexico timeshare buyers share their experience.
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned three Mexican individuals and 13 Mexican companies. These individuals and companies are linked, directly or indirectly, to timeshare fraud led by the Cartel de Jalisco Nueva Generacion (CJNG). CJNG, a violent Mexico-based organization, traffics a significant proportion of the illicit fentanyl and other deadly drugs.
https://home.treasury.gov/news/press-releases/jy1936
Canada issues travel advisory due to high pressure sales tactics used to sell timeshares in Mexico
Profeco is a Mexican governmental agency (Procuraduria Federal Del Consumidor) or consumer protection agency. They work hard to protect you as a resident or tourist while you are shopping here. Profeco is limited in its legal powers but most of the time it can reach a resolution between the consumer and merchants. http://profeco.gob.mx/
https://everythingplayadelcarmen.com/what-is-profeco-and-how-is-it-working-for-you/
By our Spanish-speaking Volunteer
I volunteer my language skills to translate complaints into Spanish. Resolving any dispute through self-advocacy takes persistence and civil communication. The process begins with research, reviewing your contract and supporting documents. It’s important to research the company, the industry and agencies that might be able to help. Mexican complaints can be filed in English, but I think it best to file complaints in Spanish.
https://qroo.us/2019/01/07/mexico-how-to-report-a-consumer-violation-to-profeco/
According to the Mexican timeshare buyer below, her Profeco mediator was professional, courteous and diligent. She filed a complaint with Profeco after her one-week Mexican vacation turned into a five month timeshare battle.
If Profeco accepts your case, you will be assigned a case number and a mediator calls. The mediator does not decide right or wrong. There will be three attempts to mediate. If mediation fails, the only option is to pursue your dispute with Mexican law. Good luck!
In the case of our timeshare buyer who was able to resolve her dispute, resolution came in the form of a counteroffer to the timeshare company’s initial offer. Most resolutions come about through compromise.
Throughout the dispute process, keep in contact with the company and keep copies of all correspondence and financial records. It’s best to send documents to Mexico by certified mail, return receipt requested. Email as well. Dispute bills received and respond to all requests for collection. Monitor your credit report and dispute any downgrade. If collection calls become harassing, an individual can send a “cease and desist” letter to stop harassing calls.
https://www.legalzoom.com/articles/4-most-common-ways-to-use-a-cease-and-desist-letter
The best defense against unfair and deceptive practices is awareness. Watch out for things that cannot be verified by reading the contract, like over-promised availability. If you’re not allowed onto the booking site during the rescission period, don’t buy. If access is not stipulated in the contract, ask to have it added.
In order of importance, these are six common mistakes timeshare buyers make that can lead to years of grief and frustration. Learn from their mistakes.
Mistake #1
High-pressure will lead to exhaustion. “I just signed to get out of there!” There is no deal so good it can’t wait a day. Remember, many timeshare contracts are perpetual and there is virtually no secondary market.
Mistake #2
Don’t second guess your decision to rescind. When you rescind, the first thing that happens is that agents will try to talk you out of it so a new round of arguments begin. If you rescind, follow the directions found in the contract. Those at sales centers have been known to trick people into rescinding.
Mistake #3
Don’t make erroneous assumptions. The rescission period does not usually “reset” to the date of an amended contract.
Mistake #4
Watch out for scare tactics. One buyer was falsely told that a lawsuit had been filed against her other timeshare company.
Mistake #5
Don’t believe sales agents. Thousands of complaints that begin with, “The salesman said…..” There is a reason why a sales agent won’t allow you to keep their handwritten notes. If you are not allowed to take notes when promised something, or keep notes the agent presented, don’t buy.
Mistake #6
Don’t believe a timeshare is an investment. One buyer was told the timeshare they were considering had an investment value of $100,000. They had referenced an attraction property being built nearby that would increase the value. Most timeshares have little to no resale value. Their is no “equity” as the term applies to residential mortgages.
By Mexico Timeshare Buyer Maryanne Veaux, age 76
Our October 2019 experience in Mexico, started off shady. At the airport a woman offered to help us find our shuttle. Our confirmation said to look for a person wearing a pink shirt. We should have become suspicious when we were introduced to a man with no pink shirt. He convinced my sister to put $160 on her credit card to attend a timeshare presentation. He originally asked for $250.
The next day, a woman approached us and asked where we were headed. We told her we were going to a timeshare presentation. She offered to get back my sister’s $160 if we attended their timeshare presentation. Our “rescue” rep took us to a breakfast.
During the presentation, they asked about my Wyndham timeshare. The sales agent produced a thirty year record of Wyndham maintenance fees that showed a large increase. At age 76, my window to travel is at most 10 years. They said Wyndham had a class action lawsuit filed against them.
The agent told me about a plan to open an amusement park affiliated with Cirque. The implication was that their properties would appreciate. He wrote out a starting value of nearly $37,000, explaining how in ten years my investment would be worth over $100,000. I recall reading $157,000 on his illustration. He said there would be no increase in their usage fees, as opposed to Wyndham. This, of course, was nonsense.
Next, we toured their display units. I agreed to purchase a a BR unit for $11,400. Our agreement was recorded. I had to pause a couple of times answering yes or no questions to the person on the phone because I could not hear their words clearly due to their rate of speaking and accent. The entire process took about eight hours.
Later that evening I noticed discrepancies. The agreement stated that usage fees could increase up to 5%. There were blackout periods, including holidays. I heeded the red flags and decided to cancel the contract.
The rescission period October 26 to November 1
On Sunday, October 27th, I explained that I wanted to cancel. I asked if I should speak to his manager. The agent said I could speak with him, but I did not hear back. I decided to go to their corporate office. The agent eventually responded saying October 31 would work, the day before the rescission period ended. He was a no show! A representative called asking why he did not show up. He said he had a toothache.
At the corporate office the representative said it could not be rescinded that day. I emphasized that it had to be that day. My rescission period would end the next day. He suggested coming in the next morning before we left for the airport.
When I arrived, they showed me numerous Wyndham timeshares for sale for $4000 or less. He said they will take over my Wyndham timeshare for $29,900. I signed a new contract for $11,400. I left the office exhausted after almost four hours and immediately started wondering why I reversed my decision.
We flew back home. My trip was overshadowed by mental stress. On November 4th I scrutinized my contract. My 1 BR unit had no kitchen. This was not what they showed me. There are pages missing pages from the new contract. There is no cover page and some clauses are referred to on pages I don’t have. The Member Verification Statement stating the 10 things I agreed to, but contradicted what I was told during the selling process.
Another Mexico Timeshare buyer’s Profeco complaint
Our Mexico sales agent, Mick, moved into the investment opportunity after we had repeatedly declined their offers. We were shown numbers of rental income that we could earn if we had the company rent out the weeks. We have the handwritten presentation.
Mick threw in an extra 25 weeks of timeshares that he said we could rent out. He showed us how we could generate up to $8,000 per year in rental income if we bought a studio unit, $12,000 for a 2 BR, and $16,000 for a 3 BR. These were minimums! They would connect us with a timeshare rental company for an additional cost of $1,200.
Mick told us we were guaranteed 125% of our money back. Mick said (his words), “You sit back and relax. The rental company will take care of everything and on your one-year anniversary in August of 2018; you will receive a check for at least $16,000, if you purchase a 3 BR unit.”
We asked, “If this was true, why isn’t everyone doing it?” Mick said that not everyone can afford to. After six hours we agreed to purchase the 3 bedroom unit as an investment opportunity.
When we got home things began to unravel. No one from the timeshare company contacted us, not the insurance company, the rental company, or the timeshare company. I called. They didn’t have an answer. I finally reached an agent with the insurance company. He sold annuities. The rental company said that the $695 I paid was only for a basic listing. We were told the rental company would market and rent our timeshares without us having to do anything! Remember “Sit back and relax.” This representative said that for them to do anything more than just list, I would have to upgrade to a Professional Package for an additional $1,100.
We waited for the rental check promised on our anniversary date. No check.
All timeshares are Buyer Beware, but double that in Mexico!